The Dollar Index is currently holding above 92.00 and is likely to keep precious metals prices under pressure. Silver is currently trading near 25.55 which is nearly 3% lower from Friday closing.
Strength in global bond yield is also adding pressure on precious metals. The 10-year T-note yield on Friday rose +1.5 bp to 1.723%.
Concern about the third wave of Covid infections in Europe is expected to cut economic growth which is negative for industrial metals and silver. German Health Minister Spahn on Friday said that Germany is in the grip of a "third wave" of rising Covid cases and "there are some fairly challenging weeks ahead of us."
On economic data front, German Feb PPI rose +0.7% m/m and +1.9% y/y, against expectations of +0.8% m/m and +2.0% y/y. Japan Feb national CPI ex-fresh food & energy rose +0.2% y/y, right on expectations.
According to the CFTC Commitments of Traders report for the week ended Mar. 16, net long for Silver futures sank 2,540 contracts to 33,609 for the week. Speculative long position plunged 787 contracts, while shorts were added by 1753 contracts.
Silver prices are likely to face stiff resistance near $26.30 and $27.22 while it may find support around $24.90.